TZ accelerates nickel project amid surging global demand
DAR ES SALAAM: TANZANIA’S long-delayed Kabanga Nickel Project has moved closer to implementation following high-level discussions between President Samia Suluhu Hassan, government officials and executives from Kabanga Nickel Ltd and Lifezone Metals, authorities said on Monday.
The project, regarded as one of Africa’s largest undeveloped nickel sulphide deposits, is expected to play a key role in Tanzania’s industrialisation ambitions and strengthen the country’s position in the global supply chain for critical minerals used in electric vehicle batteries and clean energy technologies.
A statement issued yesterday by the Directorate of Presidential Communications at State House said President Samia received a briefing on ongoing negotiations and preparations for the project from Lifezone Metals founder and Executive Chairman Keith Liddell and Tanzania’s Treasury Registrar, Nehemiah Mchechu.
The discussions focused on advancing the project towards the development and implementation phase, while ensuring that mineral beneficiation and value addition take place within Tanzania. Mr Liddell described the meeting as productive and said both the government and investors remained committed to accelerating the project under an agreed implementation framework.
“It was an absolute honour to meet Her Excellency,” Mr Liddell said in the statement. “She reaffirmed her commitment to the project and her support for advancing it under the agreed implementation plan.” He added that substantial progress had been made in resolving outstanding issues and aligning both parties on the structure of the investment.
“The mine is coming. The beneficiation is coming,” Mr Liddell said. “We are working closely with Team Tanzania to deliver this project as quickly as possible.”
The Kabanga project, located in north-western Tanzania near the border with Burundi, contains significant deposits of nickel, copper and cobalt — minerals considered critical for the global energy transition. Analysts have identified nickel demand as likely to rise sharply in coming years due to expanding electric vehicle production and battery manufacturing.
Tanzania has increasingly positioned itself as a destination for strategic mining investments under President Samia’s administration, which has sought to improve relations with foreign investors while promoting local value addition and industrial processing.
Treasury Registrar Mchechu said the government’s priority remained ensuring that beneficiation activities are carried out domestically so Tanzania gains maximum value from its natural resources.
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“We have developed a structure that both the government and investors are comfortable with,” Mr Mchechu said. “We are now working to finalise the remaining elements so that implementation can begin.” He acknowledged that negotiations surrounding projects of Kabanga’s scale and complexity required time but said recent discussions had produced a practical path forward acceptable to all sides.
According to the statement, preparations related to mining operations are largely advanced, while current efforts are focused on finalising refinery and beneficiation arrangements. Mr Mchechu said the project could generate broad economic benefits through employment creation, technology transfer, tax revenues, local supplier participation and industrial development.
“This is a game-changing project,” he said. “Together with other strategic investments, it has the potential to accelerate Tanzania’s industrial transformation and longterm development goals.” The Kabanga Nickel Project is expected to position Tanzania as a major player in the global critical minerals market at a time when countries and manufacturers are seeking diversified and stable sources of battery metals outside traditional supply chains.
Lifezone Metals, listed on the New York Stock Exchange under the ticker LZM, is developing the project in partnership with the Tanzanian government through Kabanga Nickel Ltd.
The renewed momentum around Kabanga comes amid intensifying global competition for critical minerals essential to electric vehicles, renewable energy systems and advanced manufacturing industries.
